But the bank said there were risks on the horizon, including geopolitical uncertainty, cost of living pressures on younger customers, and rising mortgage arrears.
has showered its shareholders with a record $7.7 billion in dividends, paying out almost 80¢ in every dollar of profit it made in the last financial year.
But CBA flagged risks on the horizon – including geopolitical uncertainty, cost of living pressures on younger customers, and rising mortgage arrears – as reasons for prudence. CBA is expected to maintain “robust capital levels despite extending a capital buyback and offering a high dividend,” analysts at S&P Global Ratings said.The bank is carrying $2.2 billion in extra provisions in case the economy deteriorates and unemployment rises.
“Even though CBA is paying out dividends at 79 per cent , they are running the bank conservatively. I can see dividends holding, unless we get a tough economic cycle rolling through, which depends on how the rate cycle is managed.” CBA said its high-quality capital ratio was 12.3 per cent, well above its 11 per cent target. Analysts also probed whether this could prompt CBA to lift its dividend payout ratio; Morgan Stanley analyst Richard Wiles suggested it could go to 85 per cent of profits.
The overall profit was down slightly on the record $10.16 billion of 2022-23. Cash profit was 4 per cent lower in the second half compared to the first.
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